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Michigan Free Printable Michigan tax Preparer Handbook for Electronic Filing - Individual Income Tax for 2021 Michigan Individual Income Tax Declaration for e-file

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Individual Income Tax Declaration for e-file
Michigan tax Preparer Handbook for Electronic Filing - Individual Income Tax

Michigan Department of Treasury 3015 (11-20) Michigan Tax Preparer Handbook for Electronic Filing 2020 Individual Income Tax E-file (includes City of Detroit e-File) Michigan Department of Treasury www.MIfastfile.org Table of Contents SECTION 1. GENERAL INFORMATION .................................................................... 4 1.1. Important Information......................................................................................... 4 1.2. E-mail LISTSERV for Tax Professionals............................................................ 4 1.3. State Return Self Service Options ..................................................................... 4 1.3.1 Internet Options............................................................................................ 5 1.3.2 Telephone Options ....................................................................................... 5 1.3.3 City of Detroit Return Self Service Options................................................... 5 SECTION 2. INDIVIDUAL INCOME TAX E-FILE........................................................ 6 2.1. Benefits of Individual Income Tax E-file ............................................................. 6 2.2. Introduction ........................................................................................................ 7 2.3. Important Information for Tax Year 2020 ........................................................... 7 2.4. New for Tax Year 2020 ...................................................................................... 8 2.4.1 Forms and Instructions ................................................................................. 8 2.4.2 New Legislation, Revenue Administrative Bulletins (RAB) and Directives.... 9 2.5. E-File Return Paper Copy.................................................................................. 9 2.6. E-file Mandate.................................................................................................... 9 2.7. City of Detroit Individual Income Tax Returns.................................................... 9 2.8. Identity Theft ...................................................................................................... 9 2.9. Pension Benefits.............................................................................................. 10 2.10. Form 1099-R Distribution Code ....................................................................... 10 2.11. Filing Extension for Military Personnel Serving in a Combat Zone .................. 10 2.12. Business, Rental, and Royalty Activity Worksheet........................................... 11 2.13. General Information ......................................................................................... 11 2.14. Key Dates and Reference Information ............................................................. 11 2.14.1 Michigan Income Tax E-file Calendar for Tax Year 2020 ........................... 11 2.14.2 Acknowledgment System ........................................................................... 11 2.14.3 State Program Description ......................................................................... 12 2.15. Publications ..................................................................................................... 12 2.16. 1040 MeF Program .......................................................................................... 13 2.17. How Fed/State/City Linked E-file Works .......................................................... 13 2.18. How State Unlinked E-file Works ..................................................................... 13 1 2.19. Application and Acceptance Process............................................................... 14 2.19.1 Who May Participate .................................................................................. 14 2.20. Michigan Portion of the Electronic Return........................................................ 15 2.20.1 Electronic Michigan Returns....................................................................... 15 2.20.2 Michigan PDF Attachments ........................................................................ 16 2.20.3 Exclusions from E-file ................................................................................. 19 2.20.4 Nonelectronic Portion of Michigan Returns ................................................ 20 2.21. Michigan E-file Signature Process ................................................................... 21 2.21.1 Fed/State and/or City Linked Returns......................................................... 21 2.21.2 State and/or city Unlinked Returns ............................................................. 21 2.21.3 Declaration of Taxpayer ............................................................................. 21 2.21.4 Corrections to Form MI-8453...................................................................... 22 2.21.5 Volunteer Groups ....................................................................................... 22 2.22. Important Reminders for Michigan Return Preparation.................................... 22 2.22.1 Direct Deposit ............................................................................................. 22 2.22.2 Preparer Notes ........................................................................................... 22 2.23. Transmitting the Michigan Electronic Return ................................................... 23 2.23.1 Acknowledgment of Electronic Returns ...................................................... 23 2.23.2 Status Codes Received from Treasury....................................................... 24 2.24. Tax Refund and Payment Information ............................................................. 24 2.24.1 State Tax Due Returns ............................................................................... 25 2.24.2 City Tax Refunds ........................................................................................ 26 2.24.3 City Tax Due Returns ................................................................................. 26 2.25. Responsibilities of Electronic Filers, Transmitters, and ERO’s ........................ 26 2.25.1 ERO or Tax Preparer.................................................................................. 27 2.25.2 Transmitter ................................................................................................. 27 2.25.3 Program Compliance.................................................................................. 27 2.25.4 Timeliness of Filing..................................................................................... 27 2.25.5 Changes on the Return .............................................................................. 27 SECTION 3. DIRECT DEPOSIT .............................................................................. 28 3.1. Benefits of Direct Deposit ................................................................................ 28 3.2. General Information about Direct Deposit........................................................ 28 3.3. Limitations of Direct Deposit ............................................................................ 30 2 SECTION 4. DIRECT DEBIT ................................................................................... 31 4.1. Benefits of Direct Debit .................................................................................... 31 4.2. General Information about Direct Debit............................................................ 31 4.3. Limitations of Direct Debit ................................................................................ 32 4.4. Form 5472, Direct Debit of Individual Income Tax Payment ............................ 32 3 SECTION 1. 1.1. GENERAL INFORMATION Important Information Michigan electronic filing (e-file) publications and forms are available on Michigan Department of Treasury’s (Treasury) Web site at www.MIfastfile.org. For questions about the e-file program contact Forms Documentation and E-file Services (FDES). E-File Web Site .......................................................www.MIfastfile.org E-File Coordinator...................................................Scott Bunnell Testing and File Specifications ...............................Heather Vellanti E-Mail...................[email protected]michigan.gov Treasury Web Sites ................................................www.michigan.gov/taxes www.michigan.gov/treasury www.michigan.gov/iit www.michigan.gov/citytax www.michigan.gov/identitytheft Treasury does not recommend sending account-specific information over the Internet. Federal and State disclosure laws require that taxpayer privacy and confidential records be protected. Therefore, Treasury will not send account-specific information over the Internet in response to an e-mail inquiry. FDES staff is unable to provide return status information or address specific account issues. Should an error occur on the Michigan return during processing, Treasury will communicate directly with the filer through the regular error resolution process. Treasury’s Customer Contact staff will discuss return situations with the preparer if the appropriate authorization box has been completed on the return. 1.2. E-mail LISTSERV for Tax Professionals The Treasury Tax Professional LISTSERV is a free service that disseminates mass e-mail messages within seconds to all subscribers. Sign up to receive electronic communications on Treasury’s e-file programs and other information of interest. To subscribe or for additional information, visit the Tax Preparer’s Web site at www.MIfastfile.org. 1.3. State Return Self Service Options Treasury offers a variety of services designed to assist taxpayers and most are available 24 hours a day, seven days a week. To obtain information about an account using the Internet and Telephone Options listed below, the following information from the return is needed: 4 • • • • Social Security number (SSN) of the primary filer Tax year of the return Adjusted gross income (AGI) or total household resources Filing status 1.3.1 Internet Options Visit www.michigan.gov/incometax to find the following information: • • • • • • • Current year forms and instructions Answers to many tax preparation questions Most commonly used tax forms Free assistance in preparing tax returns Retirement, Pension, Interest, Dividends, Capital Gain Estimators Pay tax due on the MI-1040, and make quarterly estimated income tax and individual income tax extension payments Other tax resources Select “Check Your Tax Refund Status” to: • • • • • Check the status of a return Check estimated payments made during the year Check the status of letters sent to Treasury Change an address Ask a specific question about an account The secure Web site was designed specifically to protect personal tax information. 1.3.2 Telephone Options Treasury’s Automated Information Service 517-636-4486 phone system for State returns is used to: • • • • Request the status of a refund Check the status of a letter sent to Treasury Request information on estimated payments Order current tax year forms 1.3.3 City of Detroit Return Self Service Options Treasury’s City of Detroit Income Tax Administration 517-636-5829. Forms, instructions, and additional information is available at www.michigan.gov/citytax. 5 SECTION 2. 2.1. INDIVIDUAL INCOME TAX E-FILE Benefits of Individual Income Tax E-file Expanded services offered. E-file is a valuable addition to a tax preparer’s list of client services, which can mean more clients. In addition, prospective clients can find an authorized e-file provider at www.irs.gov. Faster refunds for e-file returns. E-filed returns are processed faster than paper returns. Allow 14 days before checking the status of the Michigan e-filed return by visiting www.michigan.gov/iit and clicking on “Your Tax Refund Status.” Clients can also choose direct deposit and have their State refund deposited directly into their account at the financial institution of their choice. Clients can check the status of their City of Detroit e-filed return by visiting www.michigan.gov/citytax. Payment with tax due returns. Payment on a tax due return can be made using direct debit at the same time the tax return is e-filed. Filers can even select the date the payment will be debited from their account (up to 90 days, but not beyond the due date). Improved return accuracy. Treasury processes the same data the tax preparer enters into the computer. When e-filing federal, State and City of Detroit returns together, much of the same data is used so information is entered only once, again lessening the possibility of error. Treasury computers automatically check returns for mistakes. When easy-to-fix mistakes, like math errors or missing forms are found, the return is sent back for correction. The error can then be fixed and sent back to Treasury which prevents a simple mistake from holding up a refund. Detailed error conditions. Modernized e-file (MeF) business rules pinpoint the location of the error in the return and provide complete information in the acknowledgement file that is passed back to the transmitter. MeF business rules use simple wording to clarify each error that triggers a rejection. Treasury will provide up to ten business rule errors per return. For a complete listing of the e-file business rules and their description, visit the Tax Preparer’s Web site at www.MIfastfile.org. Increased customer satisfaction. Only tax preparers and their clients see the return. Tax information is encrypted and transmitted directly to the IRS and then retrieved by Treasury. An acknowledgment is sent to verify the return was received by Treasury and accepted for processing. Prior Year Returns. Michigan and City of Detroit tax returns for 2018, 2019 and 2020 will be accepted during the 2021 processing year. Portable Document Format (PDF) attachments. MeF accepts PDF attachments with e-filed returns. See Section 2.20.2 for more information on attachments that will be accepted by Michigan. 6 2.2. Introduction Treasury partners with the IRS to provide e-filing of IIT returns. The Federal/State (Fed/State) e-file Program enables taxpayers to e-file both federal and State (including City of Detroit) returns through tax preparers as part of the program’s effort to provide “one-stop shopping” for tax preparation and filing. The State and/or City unlinked e-file Program enables taxpayers to e-file their State and/or City of Detroit return separately from the federal return. E-filing is the most efficient way to file your federal, State and City of Detroit IIT returns. The IRS and Treasury will begin accepting 2020 returns in January 2021 and encourage taxpayers to use e-file and direct deposit as the fastest way to receive their refunds. 2.3. Important Information for Tax Year 2020 State and City Tax Rates Michigan Tax Rate ....................................................................... 4.25% City of Detroit Resident Tax Rate................................................. 2.4% City of Detroit Nonresident Tax Rate ........................................... 1.2% State and City Exemptions Personal Exemption..................................................................... $4,750 Special Exemption for Disabled ................................................... $2,800 Qualified Disabled Veteran Deduction ......................................... $400 Stillbirth Exemption ...................................................................... $4,750 City of Detroit Exemption Allowance ............................................ $600 Pension Deduction Single Filer Born before 1946: private pension limit........................................ $53,759 Born in 1946-1952: Standard deduction against all income† ....... $20,000 Born in 1953: Standard deduction election .................................. $20,000 against all income or Social Security, Military compensation, Michigan National Guard retirement benefits and railroad retirement 7 benefits included in AGI Born after 1953, pension not deductible*† ................................... $0 Jointly Filed Born before 1946: private pension limit........................................ $107,517 Born in 1946-1952: Standard deduction against all income†....... $40,000 Born in 1953: Standard deduction election .................................. $40,000 against all income or Social Security, Military compensation, Michigan National Guard retirement benefits and railroad retirement benefits included in AGI Born after 1953, pension not deductible*† ................................... $0 Senior Interest, Dividend, and Capital Gains Single Filer (not available for senior born after 1945) .................. $11,983 Jointly Filed (not available for senior born after 1945) ................. $23,966 * Exception: Taxpayers in Tier 3 who receive pension benefits from employment with governmental agencies not covered by the Social Security Act, review instructions for Form 4884, line 28 and 29. † Taxpayers who receive benefits from a deceased spouse, see “Retirement Benefits from a Deceased Spouse” and “Retirement Benefits Election for Tier 2 and Tier 3 Surviving Spouses” in the MI-1040 instruction booklet. 2.4. New for Tax Year 2020 2.4.1 Forms and Instructions Updated forms and instructions can be found on Treasury’s tax form search website. 8 2.4.2 New Legislation, Revenue Administrative Bulletins (RAB) and Directives • • 2020 PA 65 Treatment of Pension Subtraction for Surviving Spouses Taxpayer Protection Act For information on new legislation, RABs and directives, visit www.michigan.gov/taxes. Select “Individual Income Tax” and “Reports and Legal” tab for a list of resources. 2.5. E-File Return Paper Copy Treasury has seen an increase in the volume of both returns and e-file payment vouchers with masked or truncated SSNs and bank account number information. Taxpayers have been mailing the masked copy of their documents instead of the copy with the full account information displayed. Tax preparers should emphasize with their customers the importance of not mailing the masked copies as that will lead to delays in processing of their returns. 2.6. E-file Mandate To optimize operational efficiency and improve customer service, Treasury mandated e-filing of IIT returns. Tax preparers who complete 11 or more IIT returns are required to e-file all eligible returns. Software developers producing tax preparation software or computer-generated forms must support e-file for all Michigan and City of Detroit IIT forms that are included in the software package. 2.7. City of Detroit Individual Income Tax Returns City of Detroit returns are included as part of the Michigan return and is covered under the IIT e-file mandate. Tax preparers who complete 11 or more IIT returns are required to e-file all eligible returns. Software developers producing tax preparation software or computer-generated forms must support e-file for all Michigan and City of Detroit IIT forms that are included in their software package. When transmitting the return as a State/City submission only one acknowledgment will be issued. Both the Michigan and City of Detroit return must pass schema validation and e-file business rules to receive an accepted acknowledgment. 2.8. Identity Theft Michigan, along with many other state revenue agencies, requests additional information to combat stolen-identity tax fraud to protect taxpayers and their tax refund. If they have a driver’s license or state issued identification card, please provide the requested information from it. Providing the information could help process their return more quickly. 9 The return will not be rejected if they do not have a driver’s license or state-issued identification. Tax-related identity theft occurs when someone uses the taxpayer’s Social Security number to file a tax return claiming a fraudulent refund. Victims of tax-related identify theft can assist the Treasury by following the steps listed below: • • Paper file the return and include all required schedules. Send copies, not originals, of the following documents: o Federal return and schedules (if applicable). o Identity theft affidavits (if applicable). o Government issued photo identification o W-2’s and/or 1099’s. Even if the above steps are followed, Treasury may require additional identity verification and taxpayers may be asked: • To complete an identity confirmation quiz, which is a tool Treasury uses to assist in the protection of taxpayers against tax-related identity theft. • To provide additional supporting documentation as needed. Visit www.michigan.gov.identifytheft for more information regarding tax-related identity theft. 2.9. Pension Benefits See the MI-1040 instruction booklet posted on Treasury’s tax form search website. 2.10. Form 1099-R Distribution Code The codes for pension subtractions from box 7 of Form 1099-R must be included in the federal record information and on the Michigan Pension Schedule (Form 4884). Distribution Code 1 (Early Distribution) are not qualifying retirement and pension benefits and are not eligible to be reported on Form 4884. 2.11. Filing Extension for Military Personnel Serving in a Combat Zone United States military personnel serving in a combat zone on the due date, will be given 180 days after leaving the combat zone to file their federal and State tax returns and will be exempt from penalties and interest. When e-filing, service men and women serving in combat zones should enter the words “Combat Zone” in the preparer notes. Military income earned from service in a combat zone must be included in total household resources. While military income earned from service in a combat zone is not included in AGI, it must be included in total household resources for the property tax and home heating credits. This includes income in boxes 1 and 12 of the W-2. Visit www.michigan.gov/taxes for more information. 10 2.12. Business, Rental, and Royalty Activity Worksheet Treasury has made available a sample worksheet, titled Business, Rental, and Royalty Activity Worksheet (Worksheet), that allows taxpayers a means to identify the location of Michigan and non-Michigan business activity and rental activity. The Worksheet also allows other non-business income to be identified as Michigan or non-Michigan. The Worksheet is a suggested attachment and can be used by those who e-file or mail their return. The Worksheet, or any similar worksheet that identifies the type and location of non-Michigan business activity and income, may be attached as a PDF file to an e-filed return using the file name “BusinessActivity.pdf.” The Worksheet or similar worksheet may also be attached to any paper filed return. The Worksheet is not a required attachment, however submitting the Worksheet could reduce the need for further correspondence to obtain information required to process the return and avoid delays. The Worksheet can be obtained at www.michigan.gov/iit. 2.13. General Information Information from the W-2 and 1099 form is entered in the software and transmitted with the e-file return. W-2 and 1099 forms should not be mailed to Treasury. The Withholding Tax Schedule (Schedule W) and City Withholding Tax Schedule (City Schedule W) should be provided to the taxpayer with the printed copy of the return. 2.14. Key Dates and Reference Information 2.14.1 Michigan Income Tax E-file Calendar for Tax Year 2020 E-file Return Acceptance Period ....................................... Identical to the IRS Begin Transmitting 1040 MeF Returns to the IRS and Treasury.................................................... Identical to the IRS Michigan IIT e-File Payment Due (MI-1040-V and City-V) ..................................................... April 15, 2021 Deadline to Transmit Home Heating Credit Claim (MI-1040-CR-7)................................................................. September 30, 2021 Deadline to Transmit Michigan Returns Electronically..................................................................... Identical to the IRS 2.14.2 Acknowledgment System IRS State Acknowledgment System ................................. 1-866-255-0654 or www.irs.gov 11 2.14.3 State Program Description Type of e-file Program ...................................................... Fed/State (linked) and State and/or City (unlinked) Number of State Taxpayers .............................................. 5 million Fed/State e-file Returns (2019)......................................... 4.4 million Average State Refund (2019) ........................................... $639.01 Direct Deposit State Return ................................................................ Yes (Not applicable on amended returns) City of Detroit............................................................... No Direct Debit/Automatic Fund Withdrawals State Return ................................................................ Yes (Not applicable on amended returns) City of Detroit............................................................... Yes Warehouse Direct Debit Payments.............................. Yes, for 90 days, but not beyond the due date. Michigan Signature Required Fed/State (linked) ........................................................ No State (unlinked) ........................................................... Yes 2.15. Publications The following publications provide information for tax professionals participating in the Fed/State e-file program. IRS Publications and Forms: www.irs.gov Form/Pub. Pub. 4163 Pub. 4164 Pub. 3112 Pub. 4557 Pub. 4600 9325 Title Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns Modernized e-File Guide for Software Developers and Transmitters IRS e-file Application and Participation Safeguarding Taxpayer Data Guidelines Safeguarding Taxpayer Information Acknowledgment and General Information for Taxpayers Who File Returns Electronically 12 Treasury Publications and Forms: www.MIfastfile.org Form/Pub. Pub. 3015 MI-8453 MI-1040-V City-V Title Michigan Tax Preparer Handbook for Electronic Filing Michigan Individual Income Tax Certification for Electronic Filing Michigan Individual Income Tax Payment Voucher City Individual Income Tax e-file Payment Voucher 2.16. 1040 MeF Program Tax preparers and transmitters accepted into the IRS e-file program may participate in the 1040 Fed/State e-file Program and e-file the State and/or City of Detroit return through the MeF program. Michigan accepts two kinds of submissions: • • Fed/State (linked) State and/or City of Detroit (unlinked) 2.17. How Fed/State/City Linked E-file Works Tax preparers and transmitters accepted into the IRS Fed/State 1040 MeF Program may file federal, state and/or City of Detroit returns together in one transmission to the IRS Service Center. The state and/or City of Detroit submission can be linked to the IRS submission by including the IRS SubmissionId of the federal return. If the state and/or City submission is linked to an IRS submission (also referred to as the Fed/State return), the IRS will check to see if there is an accepted IRS SubmissionId. If there is not an accepted federal return, the IRS will deny the state and/or City submission and a rejection acknowledgment will be sent to the transmitter. Treasury has no knowledge that the state return was denied (rejected) by the IRS. If there is an accepted federal return under the IRS SubmissionId, MeF will perform minimal validation on the state and/or City submission. The state and/or City data will then be made available for retrieval by Treasury. After the state and/or City data is retrieved, it will be acknowledged and, if accepted, processed by Treasury. Note: The IRS recommends if a state submission is linked to an IRS submission, to send the IRS submission first, and after it has been accepted, send in the state submission. 2.18. How State Unlinked E-file Works The federal return does not have to be e-filed and accepted before e-filing the state unlinked return. However, the federal tax return should be computed before computing the Michigan and/or City of Detroit tax return. Tax preparers and transmitters accepted in the IRS e-file program may participate in the state and/or City unlinked e-file program when supported by their software. If the Electronic Return Originator (ERO) does not link the state and/or City return to a 13 previously accepted federal return (also referred to as State Standalone return), the IRS will perform minimal validation on the state and/or City return. If the return passes validation, the state and/or City submission will then be made available for retrieval by Treasury. After the state and/or City submission is retrieved, it will be acknowledged and, if accepted, processed by Treasury. Treasury will acknowledge receipt of all returns retrieved from the IRS. The transmitter should receive the Michigan acknowledgment within three days from the date the return is successfully transmitted to the IRS. When filing a combined Michigan and City of Detroit return, both the State and City of Detroit return must be accepted to receive an “Accepted” acknowledgment. If an error occurs in either the State or City of Detroit return, both returns will be rejected. All returns, whether e-filed or paper-filed, are subject to Treasury audit and can be delayed regardless of the acknowledgment code received. Returns are processed and refunds are issued daily. 2.19. Application and Acceptance Process 2.19.1 Who May Participate Tax preparers and transmitters accepted into the IRS MeF program may participate in Michigan 1040 e-file program and e-file Michigan Individual Income Tax and/or City of Detroit returns through the MeF program. The IRS mandates preparers filing 11 or more returns to e-file those returns, with minor exceptions. Michigan would expect any preparer e-filing federal returns to also e-file the Michigan and/or City of Detroit returns. To participate, applicants must first apply to the IRS and be accepted. Individuals must register with IRS e-Services and create a new (or revised) IRS e-file application. Individuals can contact the IRS e-help toll-free at 1-866-255-0654 for assistance. Publication 3112 IRS e-file Application and Participation specifies the application process and requirements for federal participation. The definitions used by the IRS of the various categories of electronic filers, EROs, transmitters, or software developers also apply for Michigan e-filing purposes. Once accepted into the IRS e-file program, participation in Michigan’s e-file program is automatic. Michigan will use the Electronic Filing Identification Number (EFIN) assigned by the IRS. Michigan does not assign any additional identification numbers. IRS regulations require paid tax preparers to use Preparer Tax Identification Numbers (PTINs) for all tax returns and refund claims. Visit the IRS Web site at www.irs.gov for more information. To participate in Michigan’s Fed/State and State and/or City of Detroit unlinked e-file programs, e-filers must use software that has successfully completed the IRS and 14 Michigan Assurance Testing System (ATS). Confirm that the software chosen has been approved for Michigan and/or City of Detroit and the Treasury e-file program is operational before transmitting returns. If, after acceptance, a tax preparer/transmitter or software company has production problems, Treasury reserves the right to suspend that tax preparer or software company until the problems are resolved to Treasury’s satisfaction. Treasury may conduct a suitability check on applicants who have been accepted in the Fed/State e-file program. Participation in the program may be denied if a company is not registered to conduct business in Michigan, or if there is an outstanding tax liability with Michigan. A list of approved software companies is available on Treasury’s Web site. Tax preparers are not required to file test returns with Michigan. 2.20. Michigan Portion of the Electronic Return The Michigan portion of an electronic return consists of data transmitted electronically and the supporting paper documents. The paper documents contain information that cannot be transmitted electronically. 2.20.1 Electronic Michigan Returns Michigan e-file will support the following 2020 IIT forms and schedules: Form 3174 4013 4642 4884 4973 4976 5049 5472 5530 5678 MI-1040 MI-1040CR MI-1040CR-2 MI-1040CR-5 MI-1040CR-7 MI-1040D Title Direct Deposit of Refund Resident Tribal Member Annual Sales Tax Credit Voluntary Contributions Schedule Michigan Pension Schedule Pension Continuation Schedule Home Heating Credit Claim MI-1040CR-7 Supplemental Married Filing Separately and Divorced or Separated Claimants Schedule Direct Debit of Individual Income Tax Payment Amended Return Explanation of Changes (Schedule AMD) Michigan Signed Distribution Statement for Joint Owners of Farmland Development Rights Agreements Michigan Individual Income Tax Return Homestead Property Tax Credit Claim Homestead Property Tax Credit Claim for Veterans and Blind People Farmland Preservation Tax Credit Claim Home Heating Credit Claim Adjustments of Capital Gains and Losses 15 Form MI-1040H MI-2210 MI-4797 MI-8949 Schedule 1 Schedule MI-1045 Schedule CR-5 Schedule NR 5118 5119 5120 5121 5253 5338 Title Schedule of Apportionment (e-file limited to six occurrences) Underpayment of Estimated Income Tax Adjustments of Capital Gains and Losses from Sales of Business Property Sales and Other Dispositions of Capital Assets Additions and Subtractions Michigan Net Operating Loss Schedule of Taxes and Allocation to Each Agreement Michigan Nonresident and Part-Year Resident City of Detroit Resident Income Tax Return City of Detroit Nonresident Income Tax Return City of Detroit Part-Year Resident Income Tax Return City of Detroit Withholding Tax Schedule (City Schedule W) City Withholding Tax Schedule Continuation Schedule City Underpayment of Estimated Income Tax 2.20.2 Michigan PDF Attachments Following is a list of IIT forms, line references, and filing conditions where PDF attachments are accepted by Michigan. Form State Returns Line City Returns All Forms All Forms All Forms All Forms and Lines MI-1040 9d MI-1040 18 MI-1040 Description Power of Attorney Power of Attorney MI-1310 Letter of Authority Death Certificate Explanation. Must include the form and line number reference. Certificate of Stillbirth from MDHHS Other State Returns Grantor Letter File Name POA.pdf Required No CityPOA.pdf No MI1310.pdf LetterOfAuthority.pdf No No DeathCertificate.pdf No Explanation.pdf No CertificateOfStillbirth.pdf Yes OtherStateReturn.pdf No GrantorLtr.pdf No 16 Form MI-1040 MI-1040CR-5 Line 26 MI-1040 MI-1040CR-5 26 MI-1040CR MI-1040CR-2 MI-1040CR-5 MI-1040CR MI-1040CR-2 MI-1040CR-7 MI-1040CR 10 10 22 21 24 Schedule 1 Schedule NR Schedule 1 10 Description Worksheet to allow claimants to identify percentages they can claim for a farmland preservation tax credit. A breakdown of the taxable value and property taxes for the farmland preservation tax credit. Property Tax Statement File Name FarmlandK1.pdf Required No Assessor.pdf No PropertyTaxStatement.pdf No Custodial Party End of Year Statement Letter from the landlord stating the portion of monthly payment that constitutes rent, or if not available, the prorated share of property taxes Business Activity Worksheet Supporting statement when claiming subtraction for when income from U.S. obligations exceeds $5,000 FEN851.pdf No SpecialHousingStmt.pdf No BusinessActivity.pdf No USObligationsDetail.pdf No 17 Form Schedule 1 Line 11 Schedule 1 21 Schedule 1 24 Schedule 1 28 MI-1040H 12 MI-1045 18 5119 Part 5 5121 Part 3 5119 5120 28 23 Description Claiming a subtraction of taxable railroad retirement benefits. This can include income from the RRB-1099 and/or RRB-1099R. Claiming Michigan subtraction for federal Schedule R but not required to include Schedule R with federal return. Tier 3 Standard Deduction Worksheet Prior Year NOL Documents Unitary Calculation NOL Worksheet Finance Director Approval Letter Employer Letter and Work Log Explanation. Employee Business Expenses File Name RRB1099R.pdf Required No FedSchR.pdf No StandDedTier3Wksht.pdf No PriorYrNOLDocuments.pdf No UnitaryCalculation.pdf Yes NOLWksht.pdf No ApprovalLetter.pdf Yes EmployerLetter.pdf No EmployeeBusinessExpenses.pdf No 18 2.20.3 Exclusions from E-file The taxpayer is not eligible for MeF for tax year 2020 if: Form Line(s) Description Various Filing federal returns or forms excluded in MeF. All Michigan Filing prior year return(s) for tax year 2017 or prior. Forms MI-1040 19 Claiming the Historic Preservation Tax Credit (Form 3581). Schedule 1 23 Claiming the Tier 2 Standard Deduction and has received benefits from SSA exempt employment, has retired as of 01/01/2013, and was born 01/01/1954. Schedule 1 23 Claiming both the Michigan Standard Deduction (line 23 or line 24 24) and the dividend/interest/capital gain deduction (line 26) as 26 the unremarried surviving spouse of someone born before 1946 who was at least 65 at the time of death. Schedule 1 25 Schedule 1 25 Schedule 1 25 Form 4884 7d Schedule 1 25 Form 4884 29 MI-1040CR, CR-2 or MI1040CR-7 MI-1040CR-5 8 MI-1040CR-7 13b MI-8949 MI-8949 MI-4797 1 3 2 MI-4797 10 MI-4797 19 Filing and claiming the Tier 3 Michigan Standard Deduction on line 24 with a birthdate of January 1, 1954. Claiming a pension/retirement subtraction using Form 4884 when the oldest of filer or spouse is born in 1953 and died during the tax year before reaching age 67. Claiming a pension/retirement subtraction using Section D of Form 4884 when the oldest of the filer or spouse is born January 1, 1959. Claiming the pension/retirement subtraction as a surviving spouse who qualifies to check box 7d and was born 01/01/1954. Claiming a pension/retirement subtraction using Section D of Form 4884 when the taxpayer is required to reduce the deduction limit due to railroad or military benefits subtracted on Schedule 1, line 11. Filing an amended credit-only return. Using different total household resources than on the MI-1040CR, MI-1040CR-2, or MI-1040CR-7. Claiming more Deaf/Disabled/Blind exemptions than the total personal, child and dependent adult exemptions. Filing with more than 36 short-term capital gains/losses. Filing with more than 48 long-term capital gains/losses. Filing with more than 16 sales/exchanges of property held more than one year. Filing with more than 13 ordinary gains/losses of property held one year or less. Filing with more than 17 gains from disposition of property under Sections 1245, 1250, 1252, 1254 and 1255. 19 Form MI-1040H 5121 Line(s) Description 12 Filing with more than 28 entities unitary with one another for which combining apportionment. Part 2 Reporting City Tax Paid by A Partnership 2.20.4 Nonelectronic Portion of Michigan Returns The nonelectronic portion of the Michigan return consists of the following supporting documents: Form Form 4* Form 5029* MI-1040ES* Form 5123* MI-1040-V City-V MI-8453 Form 5472 MI-1310 MI-1040CR-5 Description Application for Extension of Time to File Michigan Tax Returns Application for Extension of Time to File City Tax Returns Michigan Estimated Individual Income Tax Voucher CITY Estimated Individual Income Tax Voucher Michigan Individual Income Tax e-file Payment Voucher • State tax due returns must submit payment by the due date. For other payment options see Section 2.24. City Income Tax e-file Payment Voucher • City tax due returns must submit payment by the due date. Form City-V should only be used for e-file payments. For other payment options see Section 2.24. Michigan Individual Income Tax Certification for e-file • See Section 2.21 for additional information regarding the MI-8453. Michigan Direct Debit of Individual Income Tax • Form 5472 provides the taxpayer with a copy of their direct debit request entered in the electronic return submission. Claim for Refund Due a Deceased Taxpayer • Michigan will accept e file returns for deceased taxpayers. If a U.S. 1310 is required, that data must be included within the federal folder of the Michigan e-file return. • When e-filing on behalf of a single, deceased taxpayer, with a balance due federal return and a refund Michigan return, the Michigan return can be e-filed and the U.S. 1310 or the MI-1310 (and required document) included as a PDF attachment when supported by the software or mailed to Treasury. Farmland Preservation Tax Credit Claim • The signed statement to Treasury was removed from the MI 1040CR-5. Form 5678, Signed Distribution Statement for Joint Owners of Farmland Development Rights Agreements, should be used for farmland returns claiming unequal distribution of property taxes on jointly owned land and must have a distribution statement be signed by all owners. • Do not mail a copy of Form 5678 or the signed statement to Treasury. A copy of the signed statement should be retained to avoid reduction and/or denial of the credit. Treasury may request 20 Form Form 5327 PDF Attachments Description at a later date a copy of the signed statement to verify the unequal distribution claimed. City of Detroit Business Income Apportionment Schedule • Form 5327 is used when claiming more than one occurrence of business income apportionment on Form 5119 or Form 5120. PDF attachments (when not supported by software) • For a list of PDF attachments, see Section 2.20.2. * If the taxpayer makes either the extension payment, estimated payments or tax due payments electronically, there is no need to mail the identified form to Treasury. 2.21. Michigan E-file Signature Process 2.21.1 Fed/State and/or City Linked Returns Treasury will accept the federal signature method (Self-Selected Personal Identification Number (PIN) or Practitioner PIN). Michigan does not require any additional signature documentation. If the taxpayer chooses to complete Form MI-8453, Treasury recommends the tax preparer retain it for six years. Do not mail Form MI-8453 to Treasury. 2.21.2 State and/or city Unlinked Returns State and/or City unlinked returns can be signed using “shared secrets” or Form MI-8453 signature document. Shared secrets consist of the SSN(s), previous year’s AGI or total household resources, and the previous year’s tax due or refund amount. If Form MI-8453 is used, the tax preparer should retain a copy of Form MI-8453. Form MI-8453 should not be mailed to Treasury. The AGI or total household resources and refund or tax due amount must be from the previous year’s return. Treasury can accept this information from the original return, amended return, or return as corrected by Treasury. If the return is signed by using shared secrets and the return is rejected because the shared secrets do not match, the taxpayer/tax preparer may correct the shared secrets information and retransmit. There is no limit on how many times the return can be retransmitted in this circumstance. 2.21.3 Declaration of Taxpayer After the return has been prepared and before the return is transmitted electronically, the taxpayer (and spouse, if a joint return) must verify the information on the return and sign and date Form MI-8453. The tax preparer or transmitter must provide the taxpayer with a copy of the form. Tax preparers and EROs are prohibited from allowing taxpayers to sign a blank Form MI-8453. Form MI-8453 may also be used by tax preparers as a signature document to retain for their records. 21 2.21.4 Corrections to Form MI-8453 If the tax preparer or transmitter makes changes to the electronic return after the filer has signed Form MI-8453 but before the data has been transmitted, the tax preparer or transmitter must have the filer complete a corrected Form MI-8453 if the following conditions apply: • • Federal AGI differs from the amount on the electronic return by more than $25. The Michigan or City of Detroit refund changes by more than $5. Nonsubstantive changes are permissible on Form MI-8453, provided the tax preparer or the person making the corrections initials the changes. 2.21.5 Volunteer Groups If a taxpayer chooses to complete Form MI-8453, it should not be mailed to Treasury. Volunteer tax preparers must provide taxpayers with the MI-8453 and instruct them to retain a copy with their tax records 2.22. Important Reminders for Michigan Return Preparation 2.22.1 Direct Deposit Direct deposit information is part of the electronic record; therefore, a separate Form 3174 does not have to be completed for e-file. However, remember that the direct deposit information for the federal and State returns can be different. This is especially important when the taxpayer has a Refund Anticipation Loan (RAL). Note: Treasury cannot make any changes to direct deposit information after the return is transmitted. Direct deposit requests associated with a foreign bank account are classified as International ACH Transactions (IAT) and not allowed. If a direct deposit income tax refund is forwarded or transferred to a financial institution in a foreign country, the direct deposit will be returned to Treasury. If this occurs, the refund will be converted to a check and mailed to the address on the tax return. Taxpayers should contact their financial institution for questions regarding the status of their bank account. Refund requests cannot be made by direct deposit for an amended state return. A refund check will be mailed to the address on the Michigan return. Direct deposit is not available for City of Detroit refunds. All City of Detroit tax refunds will be issued as checks and mailed to the taxpayer. 2.22.2 Preparer Notes Software may include a Preparer Notes area for the State return. The purpose of this field is to capture additional descriptive information from lines that did not have sufficient space. Michigan Preparer Notes can contain up to 150 characters. Tax preparers are 22 encouraged to utilize Preparer Notes and PDF attachments when supported by the software. Using Preparer Notes for both federal and State and/or City returns and including recommended PDF attachments may reduce the need for Treasury to write to the taxpayer for additional information. Examples of information that can be included in Preparer Notes with recommended PDF attachments: • • • • • • • • • • “Combat Zone” if taxpayer is serving in a combat zone. “Federal Extension granted to MM-DD-CCYY” if taxpayer has been granted an extension to file his or her federal return. Explanation of a large subtraction. (Recommend including an Explanation.pdf when not supported by federal forms) Explanation of a miscellaneous subtraction. (Recommend including an Explanation.pdf) How taxpayer met expenses when total household resources is very low. (Recommend including an Explanation.pdf) Co-owners share of property taxes. (Recommend including the PropertyTaxStatement.pdf) Explanation of taxpayers paying room and board/property tax credits. (Recommend including the SpecialHousingStmt.pdf) Farmland agreement number reduced for exception by percent. (Recommend Assessor.pdf) Identify where prior year farmland refund is included on federal return. Withholding corrected on an amended MI-1040. (Recommend including an Explanation.pdf to provide copies of the W-2(s)) 2.23. Transmitting the Michigan Electronic Return The ERO, tax preparer, and/or electronic transmitter must follow all electronic transmitting procedures, communication requirements, and technical specifications required by the IRS and Treasury to participate in the State and IRS MeF programs. 2.23.1 Acknowledgment of Electronic Returns The Michigan acknowledgment informs transmitters that the Michigan return data has been received. The Michigan acknowledgment is separate from the federal acknowledgment. If a federal return is rejected, the accompanying Michigan return will also be rejected. If the error is one that can be corrected, both return records may be retransmitted to the IRS. Do not assume that an acknowledgment from the IRS is a guarantee of receipt by Michigan. 23 Under normal processing conditions, the Michigan acknowledgment file is available to a transmitter within three business days of successful transmission to the IRS. Transmitters who transmit for EROs and tax preparers must notify filers of the Michigan acknowledgment at the time of receipt. If filing a combined State and City return, both the State and City return must be accepted. If an error occurs in either the State return or City return, both filings will be rejected. 2.23.2 Status Codes Received from Treasury Treasury will perform certain checks on the State return during the acceptance process. All returns, whether e-filed or paper-filed, are subject to Treasury audit, and can be delayed regardless of the acknowledgment code given. Should an error occur on the Michigan return during processing, Treasury will communicate directly with the filer through the regular error resolution process. Treasury will discuss return situations with the preparer if the appropriate authorization box has been completed on the return. Acceptance Status: Accepted. Electronic return was accepted and will be reviewed and processed. All e-filed returns are subject to Michigan audit and can be delayed regardless of the status code given. Rejected. Electronic return was rejected. If the Michigan and/or City of Detroit return was rejected, a Rule Number which describes the reason for the rejection will be provided. If the Michigan and/or City of Detroit return is rejected, it can be retransmitted as a State and/or City unlinked return. If the return was rejected the preparer may correct the error and retransmit the return. There is no limit on how many times a State and/or City unlinked return can be retransmitted. The IIT e-file Business Rules (rejection codes and descriptions) are posted in a separate document on Treasury’s public Web page for tax preparers. 2.24. Tax Refund and Payment Information Treasury will accept e-file returns with a balance due at any time during the e-file processing season. Taxpayers who e-file returns with tax due are responsible for submitting payment of the balance due by the due date. If full payment of that tax due is not submitted by the due date, the taxpayer will receive a bill with applicable penalty and interest. Refund requests cannot be made by direct deposit for an amended return. A refund check will be mailed to the address on the Michigan return. 24 2.24.1 State Tax Due Returns In the event tax is due on the return, the taxpayer must submit payment by the due date. Payments can be made by: • Direct debit from a checking or savings account when the return is e-filed and supported by the software. A direct debit is a tax payment electronically withdrawn from the taxpayer’s bank account through the tax software used to electronically file the individual income tax return. Submitting the electronic return with the direct debit information provided, acts as the taxpayer’s authorization to withdrawal the funds from their bank account. Requesting the direct payment is voluntary and only applies to the electronic return that is being filed. Important: When the State return has tax due and the City return has a refund, the City refund cannot be reduced to cover the State tax due. Warehousing the tax payment allows the taxpayer to designate the date the payment will be withdrawn from their bank account. Treasury will accept a warehoused payment date up to 90 calendar days, but not beyond the due date. Direct debit requests after the due date cannot be warehoused and must contain a direct debit date that is equal to the transmission date of the e-filed return. Treasury will not withdraw a payment from the designated bank account prior to the requested debit date. Allow three (3) to four (4) business days from the direct debit date for the payment to be withdrawn from the account. Penalty and interest will accrue on any tax due that has not been paid by the due date of the return. The day the return was transmitted, if accepted by Michigan, is the received date. • Michigan Individual Income Tax e-Payments system by direct debit (e-Check) from a checking or savings account, or by using a credit or debit card. Michigan IIT filers have the option of making payments electronically using Michigan’s Individual Income Tax e-Payments system. Paying electronically is easy, fast, and secure. The available payment types include IIT tax payments (tax due on the MI-1040), quarterly estimated income tax payments, and individual income tax extension payments. Payments can be made using direct debit (e-Check) from a checking or savings account, or credit or debit card. There is no fee for e-Check payments. Credit and debit payments will be charged a convenience fee (2.35 percent of the total payment for credit cards and a flat fee of $3.95 for debit cards) which is paid directly to the payment processing vendor. Visit www.michigan.gov.iit for more information. • Mailing Form MI-1040-V with a check or money order after e-filing the MI-1040 return. The MI-1040-V should not be attached to a copy of the return. When the payment is made electronically, there is no need to mail the MI-1040-V to Treasury. 25 2.24.2 City Tax Refunds Direct deposit will not be available for City of Detroit refunds. All City of Detroit tax refunds will be issued as warrants and mailed to the taxpayer. 2.24.3 City Tax Due Returns In the event tax is due on the return, the taxpayer must submit payment by the due date. Payments can be made by: • Direct debit from a checking or savings account when the return is e-filed and supported by the software. A direct debit is a tax payment electronically withdrawn from the taxpayer’s bank account through the tax software used to electronically file the individual income tax return. Submitting the electronic return with the direct debit information provided, acts as the taxpayer’s authorization to withdrawal the funds from their bank account. Requesting the direct payment is voluntary and only applies to the electronic return that is being filed. Important: When the City return has tax due and the State return has a refund, the State refund cannot be reduced to cover the City tax due. Warehousing the tax payment allows the taxpayer to designate the date the payment will be withdrawn from their bank account. Treasury will accept a warehoused payment date up to 90 calendar days, but not beyond the due date. Direct debit requests after the due date cannot be warehoused and must contain a direct debit date that is equal to the transmission date of the e-filed return. Treasury will not withdraw a payment from the designated bank account prior to the requested debit date. Allow three (3) to four (4) business days from the direct debit date for the payment to be withdrawn from the account. Penalty and interest will accrue on any tax due that has not been paid by the due date of the return. The day the return was transmitted, if accepted by Michigan, is the received date. • Mailing Form City-V with a check or money order after e-filing the City of Detroit return. The City-V should not be attached to a copy of the return and should not be used for any other payment made to the State of Michigan (such as a Michigan tax due on Form MI-1040). When the payment is made electronically, there is no need to mail the City-V to Treasury. Payments using Michigan’s Individual Income Tax e-Payments system is not available for City of Detroit tax due returns. 2.25. Responsibilities of Electronic Filers, Transmitters, and ERO’s E-filers, transmitters, and EROs must abide by the terms set forth in the Michigan and IRS guidelines; and must maintain a high degree of integrity, compliance, and accuracy to continue to participate in the Michigan 1040 MeF programs. 26 2.25.1 ERO or Tax Preparer An ERO is the person or firm who constructs the return information for the filer for the purpose of electronically filing a tax return. Treasury requires that participants first be accepted into the IRS MeF program to participate in the State program. Preparers have been entrusted with the task of filing a client’s tax return and must assume responsibility of ensuring the return arrives at Treasury. In the event that the e-filed State and/or City return fails to arrive or is rejected and cannot be retransmitted, tax preparers must notify their clients to file a paper return. 2.25.2 Transmitter A transmitter is the business or individual who electronically sends the file of return data to Treasury. In most cases, the software developer will be the transmitter. 2.25.3 Program Compliance All electronic filers must comply with the requirements and specifications set forth in IRS Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns and Publication 4163, Modernized e-File (MeF) Guide for Software Developers and Transmitters. All authorized e-file providers must be diligent in recognizing and preventing fraud and abuse in the e-file programs. Providers with problems involving fraud and abuse may be suspended or expelled from participation in Michigan’s e-file programs, be assessed civil and preparer penalties, or be subject to legal action. Refer to IRS Publication 4557 Safeguarding Taxpayer Data, A Guide for Your Business, and Publication 4600 Safeguarding Taxpayer Information. 2.25.4 Timeliness of Filing Transmitters must ensure electronic returns are transmitted timely. The date the electronic return is posted and acknowledged by Treasury constitutes the receipt date of the return and payment when applicable. Any return not acknowledged by Treasury as “accepted” is considered not filed. Transmitters should confirm that Treasury has issued an acknowledgment of the Michigan return before considering the State and/or City filing complete. 2.25.5 Changes on the Return After an electronic return is acknowledged as accepted, it cannot be recalled, intercepted, or changed in any manner. If either the ERO or filer wishes to change any entries on an accepted e-filed return, an amended return must be filed. 27 SECTION 3. 3.1. DIRECT DEPOSIT Benefits of Direct Deposit Michigan taxpayers can elect to have their Michigan income tax refunds directly deposited into their checking or savings accounts. When e-filing, direct deposit is part of the electronic record. Direct Deposit is: • • • • Convenient. The refund is deposited directly into the taxpayer’s account at the financial institution of their choice. Safe. Refunds made by direct deposit are never lost or stolen. Reliable. Refunds are deposited electronically, even when taxpayers are on vacation or traveling on business. Confidential. On average, fewer people will see a taxpayer’s account information with direct deposit than with paper checks. Refund requests cannot be made by direct deposit for an amended state return. A refund check will be mailed to the address on the Michigan return. Direct deposit is not available for City of Detroit refunds. All City of Detroit tax refunds will be issued as checks and mailed to the address on the City of Detroit return. 3.2. General Information about Direct Deposit Treasury will not honor direct deposit requests made by persons who owe individual or business taxes or have another State or federal debt that would result in their refunds being offset. This includes third-party debts such as child support, garnishments, or levies. Treasury is not responsible for the misapplication of a direct deposit that is caused by error, negligence, or malfeasance on the part of the taxpayer, ERO, transmitter, software developer, financial institution, or any of their agents. Tax preparers should advise the taxpayer that once an electronic return has been accepted for processing by the State, the direct deposit election cannot be rescinded. The RTN of the financial institution or the bank account number cannot be changed. The authorization for direct deposit is voluntary and must be renewed yearly. An e-filer who functions as an ERO must: • • • Ensure the taxpayer is aware of the general information regarding a direct deposit. Not charge a separate fee for direct deposit. Accept a direct deposit election to the financial institution designated by the taxpayer. 28 • • • • • • • Ensure that a taxpayer electing direct deposit meets the eligibility requirements. The taxpayer must provide proof of account from the financial institution the taxpayer designates to receive the direct deposit. This information is best obtained from official financial institution records, account cards, checks, or share drafts that contain the taxpayer’s name and address. The account must be in the taxpayer’s name. Direct Deposit requests associated with a foreign bank account are classified as IAT. If an income tax refund direct deposit is forwarded or transferred to a financial institution in a foreign country, the direct deposit will be returned to Treasury. If this occurs, the refund will be converted to a check and mailed to the address on the tax return. Taxpayers should contact their financial institutions for questions regarding the status of their bank account. Verify the direct deposit information on Form MI-1040 or Form 3174 (if a paper filing becomes necessary) is correct and is the information transmitted with the electronic portion of the return. Enter the number from left to right and leave unused boxes blank. Include hyphens but omit spaces and special symbols. The Routing Transit Number (RTN) is usually found between these symbols:|: and |:. The sample check above shows where the RTN and account number may appear. The RTN must be nine digits. If the first two digits are not “01” through “12” or “21” through “32,” the direct deposit will be rejected and a refund check will be sent to the address as filed on the return. Michigan tax preparers may recognize a valid Michigan RTN because it generally begins with “07” or “27,” which is the Federal Reserve District that Michigan is in. “07” is for banks and “27” is for credit unions. Upper Peninsula banks may have “09” or “29.” Ensure the direct deposit of refund for Michigan is not deposited in an RAL account for the federal refund. 29 If Form MI-1040CR-7 is filed, it is important that box 10 be checked if heating costs are currently included in rent. When checked, the taxpayer will receive a refund and may choose direct deposit instead of receiving a paper check. If box 10 is not checked, a State of Michigan energy draft will be issued. Energy drafts must be redeemed at the taxpayer’s utility company; therefore, direct deposit is not available. 3.3. Limitations of Direct Deposit If Treasury is unable to honor a request for direct deposit, a refund check will be mailed to the taxpayer’s address on the return. Following are some reasons for not honoring a direct deposit request: • • • • The taxpayer’s account was closed after the direct deposit request was submitted. The taxpayer asked to have the refund deposited into a foreign financial institution or foreign branch of a U.S. financial institution. The State of Michigan can only make direct deposits to accounts in U.S. financial institutions that are located in the United States. The taxpayer or spouse owes a debt to the State of Michigan or to a third party that requires the State to retain all or part of the refund. Treasury must satisfy this debt before issuing any remaining refund. Examples of third-party debts include child support arrearages and debts covered by a garnishment served against the refund or credit. If this situation occurs, the taxpayer will receive a letter stating the refund amount and to which debt it was applied. Depending upon the amount of the debt, there could be no remaining refund. The financial institution returns the direct deposit because an incorrect RTN or account number was entered on the electronic record. Treasury limits the number of deposits that can be made into any one account. Therefore, Michigan is not able to process returns when a refund is deposited into the Rush Visa Card account referenced at www.rushcard.com/index.aspx. Participation in this program would significantly delay clients’ refunds. Any assistance in discouraging taxpayers from participating in the Rush Visa Card program in Michigan would be appreciated. If the volume of accounts using this service is too large, Treasury would have to look at the possibility of issuing paper refunds to any returns with this account number list
Extracted from PDF file 2020-michigan-form-mi-8453.pdf, last modified December 2020

More about the Michigan Form MI-8453 Individual Income Tax TY 2020

We last updated the Individual Income Tax Declaration for e-file in April 2021, so this is the latest version of Form MI-8453, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form MI-8453 directly from TaxFormFinder. You can print other Michigan tax forms here.

Other Michigan Individual Income Tax Forms:

TaxFormFinder has an additional 97 Michigan income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form MI-1040ES Estimated Individual Income Tax Voucher
Schedule W Withholding Tax Schedule
Form MI-1040 Individual Income Tax Return
Form MI-1040CR Homestead Property Tax Credit Claim
Form MI-1040CR-7 Home Heating Credit Claim

Download all MI tax forms View all 98 Michigan Income Tax Forms


Form Sources:

Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form MI-8453 from the Department of Treasury in April 2021.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Michigan Form MI-8453

We have a total of ten past-year versions of Form MI-8453 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Form MI-8453

Michigan tax Preparer Handbook for Electronic Filing - Individual Income Tax

2019 Form MI-8453

Michigan Tax Preparer Handbook - IIT E-file

2018 Form MI-8453

Microsoft Word - 2018 IIT Preparer Handbook_Draft 2.docx

2017 Form MI-8453

2017 Michigan Individual Income Tax Declaration for e-file MI 8453

2016 Form MI-8453

2016 Michigan Individual Income Tax Declaration for e-file MI 8453

2015 Form MI-8453

2015 Michigan Individual Income Tax Declaration for e-file MI 8453

2014 Michigan Individual Income Tax Declaration for e-file MI 8453 2014 Form MI-8453

2014 Michigan Individual Income Tax Declaration for e-file MI 8453

2013 Michigan Individual Income Tax Declaration for e-file MI 8453 2013 Form MI-8453

2013 Michigan Individual Income Tax Declaration for e-file MI 8453

MI-8453, 2011 Michigan Individual Income Tax Declaration for e-file 2011 Form MI-8453

MI-8453, 2011 Michigan Individual Income Tax Declaration for e-file


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While we do our best to keep our list of Michigan Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

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